Vermont Business Tax
Business tax is a privilege tax paid to the Vermont Department of Taxes for the privilege of doing business in the State. It is collected based on sales, property, and payroll.
Generally, most business types are required to pay state business taxes in Vermont. However, the exact tax forms required depend on the type of business and its specific activities. In general, business tax forms will require a variety of information and documents including federal tax returns, financial statements, records of business expenses and income, payroll information, and more.
Depending on the type of business, some businesses may also be required to pay sales and use taxes in Vermont. For example, if a company sells physical products or taxable services in the state of Vermont, it must collect sales tax from its customers and submit the collected taxes to the Department of Taxes.
In addition, most businesses will need to obtain a federal Employer Identification Number (EIN), which is similar to a person’s Social Security number. This EIN is used to identify the business to the IRS and is necessary for filing and paying taxes, submitting payroll information, and opening bank accounts. The process for obtaining an EIN is easy and can be done online.Vermont Business Tax Registration
Vermont Corporation and LLC Taxation
If your business in Vermont is a C-Corporation, you will need to pay both federal and Vermont corporate income tax. You can minimize this burden by using tax deduction strategies such as charitable donations and leveraging tax credits. If your business is a Vermont corporation or LLC that makes taxable sales in the state, you must register for a tax account with the Department of Taxes by completing Form BR-400. Then, you must file returns and remit payments quarterly or annually, depending on your sales volume. You can also register for a sales and use a tax account online at myVTax.
C corporations and LLCs electing to be taxed as C corporations pay corporate income taxes based on net income allocable or apportioned to the state. If you need more time to file your return, submit an application for an extension by the original due date using Vermont Form BA-403 and include a payment with your form.
Vermont Business Income Tax Due Dates
The due date of a Vermont business income tax return is the 15th day of the fourth month after the end of your fiscal year or April 15 for calendar year filers. For S corporations, partnerships, and single-member LLCs, the due date is the same as that of their federal income tax return.
